The government is abandoning its initial plan to increase and unify VAT rates following public criticism, and the new fiscal changes will be more moderate and designed to protect vulnerable consumers, Prime Minister Vasile Tofan said during the Secretele Puterii program on Jurnal TV.
The prime minister said reduced VAT rates would remain in place for essential food products, including bread, milk, vegetables, fruits, and potatoes, while tax changes would be introduced gradually.
The government will also avoid changing the tax regime for electricity and natural gas consumption during the cold season. The new rules will only take effect from April 1, 2027.
According to Tofan, for natural gas consumption, the first 150 cubic meters used monthly will continue to be taxed with an 8% VAT rate, while consumption above this threshold will be subject to the standard 20% VAT rate. He explained that around 86% of households consume less than 150 cubic meters of gas during the cold season, meaning most consumers will not be affected by the change.
A similar mechanism will apply to electricity. The first 100 kWh will remain subject to 0% VAT, while consumption above this level will be taxed at 20%.
At the same time, the government is preparing higher taxes for products considered harmful to health and for certain economic sectors. The prime minister announced increases in excise duties on tobacco and alcohol, as well as higher taxes on gambling activities.
Tofan said Moldovans spend around 10 billion lei annually on gambling, equivalent to 2.5% of GDP, while the figure could reach 20 billion lei when the illegal market is included. However, he noted that the taxation system would be designed carefully to avoid pushing players toward unregulated platforms.
Another new measure concerns the banking sector. The government plans to increase the corporate tax on banks’ profits by 50%, from 12% to 18%, but only for the 2027 fiscal year.
The prime minister acknowledged that higher taxation of banks could affect lending capacity but said the government had assessed the risks and believes the benefits outweigh potential negative effects. According to Tofan’s estimates, the measure could generate around 600 million lei in additional budget revenues in a single year.